A new report from Thomson Reuters Checkpoint helps large employers understand reporting requirements under new IRS Forms 1094-C and1095-C, which will be required starting in 2016 to comply with the Affordable Care Act. Specifically, the report explains that the forms collect information on offers of, and enrollment in, employer-sponsored health coverage so the IRS can administer health care reform’s premium tax credits, individual shared responsibility payments, and employer shared responsibility (play or pay) penalties.
Gathering data and accurately completing the forms presents a complex task. Thomson Reuters Checkpoint has published Health Care Reform Information Reporting Requirements for Employers to help large employers comply with the latest reporting guidance.
The instructions for the final forms and other IRS guidance explain how applicable large employers (ALEs) will report offers of health care coverage to their employees and to the IRS. This report focuses on the reporting requirements for ALEs, which must file their 2015 information with the IRS and must provide associated statements to employees for the first time early next year.
“ALEs have a lot of work ahead of them,” said Jeff Knapp, senior editor with the Tax & Accounting business of Thomson Reuters. “Given the complexity of the forms and the use of a new electronic filing system, employers face a steep learning curve between now and the early 2016 filing deadlines.”
To avoid non-compliance penalties, ALEs must report this information in the first quarter of 2016. The report includes:
- A summary of relevant health care reform provisions.
- The basics of forms 1094-C and 1095-C.
- Reporting guidelines for self-insured and fully insured health plans.
- Applicable deadlines.
- The consequences of filing failures.